The move is a big step for the beauty brand, which is incidentally part owned by French cosmetics giant L’Oreal, as The Body Shop Australia accounts for the company’s fifth biggest retail sales.
Looking ahead
“I am delighted to welcome the talented teams in Australia who have contributed to building a successful business in this strategic market,” says Jeremy Schwartz, Chairman and CEO The Body Shop.
“I am very much looking forward to working with them and pursuing the development of The Body Shop values, culture and business in Australia.”
The business has been built as a franchise in Australia thanks to Graeme Wise, who has built it up over the last 32 years, and is happy that the business has secured its future.
“In transferring ownership of the business to The Body Shop International, I am pleased that the future of the business will be in the best possible hands,” he comments.
Control
As per the deal, The Body Shop Australia will now move from a Franchise operation to a Company-Owned market, giving the company more control over the operation.
When operating company-owned stores, the profits stay with the company and do not have to be shared with outside owners, meaning The Body Shop will hopefully boost its profits in Australia.
At the end of the third quarter, 30 September 2014, The Body Shop as a whole, recorded global sales of -0.7% like-for-like and +1.0% based on reported figures. Fourth quarter and year-end figures are yet to be released.
Business is improving, having shown slight growth in the third quarter, mainly down to new innovations which are boosting the strategic skin care category. It remains to be seen how the new acquisition will affect the business.